New York Bankruptcy Law
FANNING & HUGHES: New York Bankruptcy Law Firm
If you are suffering under the burden of debt, an experienced New York bankruptcy lawyer from Fanning and Hughes can give you a fresh financial start. The New York bankruptcy lawyers at Fanning and Hughes can help you file for bankruptcy under Chapter 7 or Chapter 13.
Chapter 7 Bankruptcy – An Overview
Chapter 7 bankruptcy, sometimes called "liquidation", cancels your debts. A typical Chapter 7 case is closed within six months, canceling your unsecured debts such as credit cards, personal loans and medical bills. It does not discharge mortgages, car payments (where you keep the car), student loans, recent taxes, back child support and some other items.
Who Can File?
You can’t file Chapter 7 if you already received a bankruptcy discharge in the last six to eight years, depending which chapter of bankruptcy you previously filed.
You can’t file Chapter 7 if, based on your income level and expenses, you can afford to repay your creditors through a Chapter 13 repayment plan. This determination is made through a complex analysis called the Means Test.
Credit Counseling
Before you can file a case you must complete a credit counseling course. The purpose of this counseling is to determine if an informal repayment plan would work for you instead of bankruptcy. It may be waived only in cases of disability or active military service. The counseling session can be done over the phone or on the internet. It takes an hour and costs about $50. Two reputable companies you may consider are Hummingbird (www.hummingbird.org - internet only) and the Institute for Financial Literacy (1-866-662-4932 or www.financiallit.org).
Do I get to keep my property?
In Bankruptcy, an individual is allowed to keep a certain amount of property. These are called the exempt assets. Non-exempt assets can be sold by the trustee to give the money to your creditors. Therefore, if you have non-exempt assets that you don't want the Trustee to take, such as a house with more than $50,000 in equity, you may need to consider Chapter 13.
The Automatic Stay
Once a case is filed, something known informally as the automatic stay goes into effect. The automatic stay immediately stops most creditors from collecting against you. Once they are notified of a case, creditors must stop all collection efforts.
Who is the Trustee?
A chapter 7 trustee is an officer of the Court appointed by the Department of Justice to oversee the bankruptcy estate, investigate as to whether the debtor has any assets or has committed any fraudulent acts, collect and sell those assets and distribute them to the debtor's creditors.
The “First Meeting of Creditors” (AKA “341 meeting”)
Within 45 days of the filing of your case, the Trustee will hold schedule the “first meeting of the creditors”. The trustee runs the meeting and, after swearing you in, will ask you questions regarding your bankruptcy and the papers you filed.
How long does a Bankruptcy case take?
The whole Chapter 7 bankruptcy process takes about four to six months and costs $299 in Court fees. It commonly requires only one trip to the courthouse.
The Bankruptcy Discharge
At the end of the case, all of your debts are wiped out by the discharge, except:
- Child support, some tax debts, student loans, and some other debts
- Debts that the court has declared nondischargeable
Personal Financial Management Instructional Course
In order to receive a discharge in bankruptcy, you must complete a personal financial management instruction course. 11 U.S.C. § 111(d). This course is separate and distinct from the Credit Counseling course that you must take before a case can be filed.
In a Chapter 7 case, you are required to file a certificate certifying that you completed the course within a certain time. Your failure to take the course and file the certificate before the deadline will result in your bankruptcy case being closed WITHOUT the entry of a discharge. FRBP 4004(c)(1)(H). The main purpose of filing for bankruptcy is to obtain a discharge.
Next >> Chapter 13 Bankruptcy – An Overview
We are a federally designated debt relief agency helping people for relief under the bankruptcy code.
FANNING & HUGHES, PLLC
108-18 Queens Blvd -
4th Floor
Forest Hills, NY 11375
718.261.3290 p
718.228.2422 f
contact@FHLawOffice.com
